To date, the Indian and Russian authorities have not suspended trade negotiations with the local national currency, the Indian rupee. However, both sides have a number of issues that need further discussion. informs The New Indian Express quotes government officials.
“Government officials denied reports that India and Russia suspended negotiations on trade deals in Indian rupees. Officials acknowledged there were questions about how Russia could use the excess rupees in vostro accounts, but negotiations are ongoing to resolve these differences.
The Government of India authorized the use of the national currency in international trade agreements in November last year. This measure was explained by the need to promote exports within the framework of the Asian country’s foreign trade policy. But on May 4, Reuters, citing sources reportedThat Moscow and New Delhi could not agree on bilateral agreements in rupees.
One of the reasons for the disagreements was that Russia’s inability to fully convert the Indian currency made it unprofitable to trade. As a result, the parties are now back to paying in US dollars, but are looking for alternatives, according to two Indian government officials.
Source: Gazeta
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